Last year Cupertino acquired a company called AuthenTec which is specialized in developing solutions for enhancing mobile security for various companies.
Apple reportedly intends to implement a fingerprint reader developed by AuthenTec in the rumored iPhone 5S.
According to KGI Securities analyst Ming-Chi Kuo, Apple will work with several Taiwanese companies in the process of integrating the fingerprint sensor.
He writes: “Assuming this is the case, we predict a production flow of the fingerprint sensor as follows: Apple (design) –> TSMC (foundry) –> Xintec (wafer-level packaging) –> ASE and Sharp (module).
While there’s no question that Apple possesses key fingerprint sensor technology, we also think TSMC is a reasonable foundry choice for Apple as it used to serve AuthenTec. We expect Xintec to make the supply chain on its expertise in wafer-level packaging and TSMC is its largest share holder. However, as it was loss-making in 2012, it’s possible Xintec will get capex support from TSMC for the new business.”
According to reports, Apple is looking to sign contracts with Taiwanese companies in order to develop this new component that will be the main new feature on the iPhone 5S.